Microprocessor Market Size - Global Industry, Share, Analysis, Trends and Forecast 2022 - 2030
The Global Microprocessor Market Size accounted for USD 111.3 Billion in 2021 and is estimated to achieve a market size of USD 163.8 Billion by 2030 growing at a CAGR of 4.5% from 2022 to 2030. The global microprocessor market value has recently gained traction due to its use in digital consumer products, desktop computers, and telecommunications, as well as its role as the nervous system of servers, Personal computers, and data centers. Furthermore, the microprocessor market growth is likely to expand further during the projected timeframe due to the rising use of microprocessors in cellular phones and the growing use of integrated computer processors in the medical electronics sector.
Microprocessor Market Report Key Highlights
- Global microprocessor market revenue is estimated to expand by USD 163.8 billion by 2030, with a 4.5% CAGR from 2022 to 2030.
- Asia-Pacific microprocessor market share accounted for over 45% shares in 2021
- North America microprocessor market growth will observe fastest CAGR from 2022 to 2030
- Based on technology, RISC segment accounted for over 36% of the overall market share in 2021
- Among application, personal computers sector engaged more than 38% of the total market share
- According to the study, global PC shipments reached 69.9 million units in the first half of 2021, rising 32% from the first half of 2020.
- Based on application, healthcare segment will account for more than 50% of overall market share in 2021
A microprocessor is an essential component of computer architecture, without which the user will be unable to perform any tasks on their computer. It is a programmable device that accepts input, performs arithmetic and logical operations on it, and produces the desired output. A microprocessor is a digital device on a chip that can retrieve instructions from memory, decode and execute them, and return results. A microprocessor is an electronic component that is integrated into a single integrated circuit (IC) and contains millions of small components that work together, such as diodes, transistors, and resistors. This chip performs a variety of functions, including timing, data storage, and interaction with peripheral devices. These integrated circuits are found in a variety of electronic devices, including servers, tablets, smartphones, and embedded devices.
Global Microprocessor Market Dynamics
Market Drivers
- Increasing use of Internet of Things (IoT)-enabled products and equipment
- Growing use of cloud-based technologies and server infrastructures
- Rising demand for high-performance, energy-efficient processors and graphics processors
- Increasing automation across all industries
Market Restraints
- Adoption of alternate solutions is increasing
- PC demand is declining
Market Opportunities
- Increased demand for AI and deep learning-based applications
- Growing implementation of Smart Manufacturing and Industry 4.0
Microprocessor Market Report Coverage
| Market | Microprocessor Market |
| Microprocessor Market Size 2021 | USD 111.3 Billion |
| Microprocessor Market Forecast 2030 | USD 163.8 Billion |
| Microprocessor Market CAGR During 2022 - 2030 | 4.5% |
| Microprocessor Market Analysis Period | 2018 - 2030 |
| Microprocessor Market Base Year | 2021 |
| Microprocessor Market Forecast Data | 2022 - 2030 |
| Segments Covered | By Technology, By Application, And By Geography |
| Regional Scope | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Companies Profiled | Advanced Micro Devices, Inc., Toshiba Electronic Devices and Storage Corporation, Intel Corporation, Qualcomm, Texas Instruments, and Taiwan Semiconductor Manufacturing Company. |
| Report Coverage |
Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis |
Artificial Intelligence (AI) Offering Hope To Global Microprocessor Market Trend
According to a report published by the Institution of Engineering and Technology, the increasing use of artificial intelligence (AI) is upscaling many standard types of IT workloads as well as powering new services powered by advanced algorithmic data processing and machine learning techniques. There is no universally accepted definition of an AI chip. According to the Beijing Innovation Centre for Future Chips (ICFC), any type of microprocessor used for AI applications can be referred to as an AI chip. As a result, many novel designs and methods for AI applications have emerged, covering all stages of microprocessor construction, from materials and devices to circuits and architectures. According to the study, by 2025, AI-related processors could account for nearly 20% of total microprocessor demand, worth approximately US$67 Bn. In 2019, a slew of new AI chips was released by a variety of high-tech companies, ranging from incumbent microprocessor vendors (such as AMD, Intel, IBM, and Qualcomm) to cloud service providers (AWS, GPC, and Alibaba) and investor-funded start-ups (like BrainChip, Cerebras, Graphcore, Groq, and Gyrfalcon Technology). Furthermore, some of the most innovative AI chip offerings have come from vendors with limited experience in the microprocessor sector – start-ups such as BrainChip, Cerebras, Graphcore, and Gyrfalcon Technology.
Microprocessor Market Dynamics
The global microprocessor market is being pushed hard by rising demand for smartphones and tablets all over the world. The microprocessor can transfer data from one location to another in a user-friendly and easy-to-transfer manner, which is increasing its market share. Furthermore, the expansion of the IT sector and IoT infrastructure may lead to the expansion of the microprocessor market. In the future, technological advancements and graphic-based superiority are expected to create new growth opportunities for the global microprocessor market size.
Despite the microprocessor's numerous advantages, there are some factors that limit and challenge the overall market's growth. Factors such as high microprocessor integrated circuit manufacturing costs, circuit design costs, increasing sales of low-cost mobile devices, decreasing shipment of individual computers, and high raw material prices are expected to limit the market. Furthermore, the growing popularity of consumer electronics, technological advancements, and rising demand for high processing speeds are some of the major factors driving the microprocessor market's growth. The market for microprocessors is expanding in the APAC region as the electronics industry expands, providing an opportunity for market participants to establish a strong market position.
Microprocessor Market Segmentation
The worldwide microprocessor market segmentation is based on the technology, application, and geography.
Microprocessor Market By Technology
- CISC
- ASIC
- RISC
- Superscalar
- DSP
According to the microprocessor industry analysis, the Reduced Instruction Set Microprocessor (RISC) segment holds the maximum market share for the market in 2021. This is due to reduced chip complexity, which aids in maintaining constant instruction size without a microcode layer or associated overhead.
Microprocessor Market By Application
- Smartphones
- Servers
- Personal Computers
- Embedded Devices
- Tablets
- Others
According to the microprocessor market forecast, the PC segment has dominated the global microprocessor market in the past and is expected to do so again during the forecast period. The personal computer segment provides significant commercial opportunities for key market players to capitalize on, as evidenced by the increasing use of microprocessor chips in personal computers around the world. Microprocessors provide numerous benefits such as increased storage, improved volatile memory, logical functions, more operating system tasks, and low power consumption, resulting in increased adoption of the component in personal computer applications.
Furthermore, personal computer manufacturers are collaborating with technology providers to provide consumers with high-tech products. For example, in 2018, Samsung announced a collaboration with Avnet, Inc., a provider of System on Chip and ASIC solutions. The collaboration aimed to involve both companies in designing and manufacturing ASIC that will benefit consumers by utilizing the most recent and improved ASIC design solutions implemented with silicon ICs and advanced process technologies.
Microprocessor Market Regional Outlook
North America
- U.S.
- Canada
Europe
- U.K.
- Germany
- France
- Spain
- Rest of Europe
Latin America
- Mexico
- Brazil
- Rest of Latin America
Asia-Pacific
- India
- Japan
- China
- Australia
- South Korea
- Rest of Asia-Pacific
The Middle East & Africa (MEA)
- Gulf Cooperation Council (GCC)
- South Africa
- Rest of the Middle East & Africa
Asia-Pacific Is Expected To Record Dominant Market Share For The Global Microprocessor Market
The increased adoption of digital transformation technologies such as deep learning, artificial intelligence (AI), and the Internet of Things (IoT) across various industries such as automotive, consumer electronics, healthcare, and industrial has fueled demand for microprocessors in the Asia-Pacific region. Furthermore, the emergence of Asia-Pacific as a manufacturing hub, as well as the adoption of automation processes to improve manufacturing efficiency, is driving up demand for microprocessors in this region.
North America, on the other hand, is expected to grow moderately during the analysis period. The presence of key players in this region is attributed to the growth. This is one of the most important factors influencing the growth of the microprocessor market in this region.
Microprocessor Market Players
Some of the top microprocessor market companies offered in the professional report include Advanced Micro Devices, Inc., Toshiba Electronic Devices and Storage Corporation, Intel Corporation, Qualcomm, Texas Instruments, and Taiwan Semiconductor Manufacturing Company.
Frequently Asked Questions
What is the size of global microprocessor market in 2021?
The estimated value of global microprocessor market in 2021 was accounted to be USD 111.3 Billion.
What is the CAGR of global microprocessor market during forecast period of 2022 to 2030?
The projected CAGR microprocessor market during the analysis period of 2022 to 2030 is 4.5%.
Which are the key players operating in the market?
The prominent players of the global microprocessor market are Advanced Micro Devices, Inc., Toshiba Electronic Devices and Storage Corporation, Intel Corporation, Qualcomm, Texas Instruments, and Taiwan Semiconductor Manufacturing Company.
Which region held the dominating position in the global microprocessor market?
Asia-Pacific held the dominating microprocessor during the analysis period of 2022 to 2030.
Which region registered the fastest growing CAGR for the forecast period of 2022 to 2030?
North America region exhibited fastest growing CAGR for microprocessor during the analysis period of 2022 to 2030.
What are the current trends and dynamics in the global microprocessor market?
Increasing use of Internet of Things (IoT)-enabled products and equipment, as well as growing use of cloud-based technologies and server infrastructures drives the growth of global microprocessor market.
By application segment, which sub-segment held the maximum share?
Based on application, personal computers segment is expected to hold the maximum share of the microprocessor market.
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